Economic Consequences of Cambodia's Border Conflict with Thailand

As tensions between Cambodia and Thailand escalate over their border conflict, the economic costs of the crisis are beginning to manifest in several key areas. According to research fellow Kosalthanan Neth, the ongoing conflict is affecting trade, tourism, displaced families, and migrant workers, causing significant disruptions to the Cambodian economy. The conflict began with a 28 May clash in the Emerald Triangle, where one Cambodian soldier was killed and border tensions escalated. In response, Cambodia has banned Thai imports, including fruits, vegetables, telecoms, and energy, while both sides trade accusations over the causes of the clash.

Key Takeaways:

• Trade: Cambodia's import bans target areas where it has a comparative advantage, such as fruits and vegetables, minimizing short-term exposure to trade disruptions. However, vulnerabilities remain, particularly in the fertiliser and cassava export markets.
• Tourism: The border conflict has caused a significant decline in tourist arrivals, with potential losses estimated in the millions of dollars.
• Displaced Families: The conflict has led to the displacement of several families in the affected areas, with some estimates suggesting over 1,000 individuals have been affected.
• Migrant Workers: Migrant workers from Thailand have been affected by the conflicts, with some reports suggesting they have been denied entry into Cambodia or have faced difficulties in returning to Thailand.
• Economic Impact: The conflict is estimated to have cost Cambodia's economy millions of dollars, with some sources suggesting losses of up to $10 million per week.
• Remittance Flows: The conflict has also affected remittance flows, with families in Cambodia struggling to receive money from migrant workers in Thailand.

Statistics:

• Cambodia exported $1.45 billion of fruits and vegetables in the first seven months of 2025.
• In the same period, Cambodia imported only $9.6 million of fruits and vegetables from Thailand.
• Cambodia received $41 million in fertiliser imports from Thailand in 2024, and exported $130 million of cassava to Thailand in the first seven months of 2025.
• The conflict has caused a significant decline in tourist arrivals, with estimates suggesting losses of up to 10% in the first quarter of 2025.
• Over 1,000 families have been displaced due to the conflict, with significant impacts on local communities.

Sources:

• "Economic consequences of Cambodia's border conflict with Thailand," Kosalthanan Neth, published in the Khmer Times on Monday, although date not specified.